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Capital.com pays dividends

For stock investors, dividends are an issue that investors are often very interested in because they are tied to your profits. So when investing in stocks on Capital.com, do stock investors pay dividends? Let’s find out in the article below.

Do stock investments on Capital.com pay dividends?

Dividends are amounts that a company periodically pays to shareholders, in addition to dividends or reserves.

Dividends are distributed according to the capital contributed by each shareholder of the company, in the form of giving them a certain amount of money per share that they own.

For example, if Apple announced a dividend of $0.80 per share, the shareholder with 50 shares would receive a dividend of $40.

In fact, not all exchanges allow you to receive dividends, especially with CFD trading. But Capital.com does it himself for customers.

Your account may have dividends added or subtracted if the account is trading a stock, ETF, or index that pays dividends.

  • If you hold a BUY position, you will receive dividend payment directly on your available balance.
  • If you hold a SELL position, the dividend payment will be deducted from the available balance.

Dividend payment date on Capital.com

In the dividend process there are four important dates that you need to keep in mind:

  1. Announcement date: The date on which the company’s management announces its intention to pay dividends. The Board of Directors also communicates the value of the dividend, the ex-dividend date and the dividend payment date.
  2. Ex-dividend date: If traded on this day or after this date, the buyer will not be entitled to dividends. Only holders of shares prior to the ex-dividend date will receive dividends.
  3. Registration date: When the company checks the records to see who is eligible to receive the dividend. The record view date is one business day after the ex-dividend date.
  4. Dividend date: when dividends are actually paid to the company’s shareholders (applicable to real assets).

For CFD assets on shares Capital.com, dividends will be added (subtracted) to the balance available on the Ex-Dividend Date.

Things to keep in mind when investing to receive dividends on Capital.com

  • Investments to receive dividends are mainly applied on the US stock market. The European market does not generously offer dividends (no dividends or pays very little). Therefore, you need to consider in the process of choosing stocks in which to invest.
  • When using a trading strategy to receive dividends, investors should be careful when the stock is in a downward trend. Because it is very likely that the number of dividends you will receive will not be much, but the loss from the fall in the share price will be many times greater. You can use short-term analysis techniques to predict whether the price will rise or fall the next day for a better view.
  • Remember that when you SELL, you pay a commission equal to the dividend multiplied by leverage. So, when you open a SELL position, you need to check when the dividend will be paid to account for the loss that could erode your potential profit.

How much tax is deducted on dividends?

Receiving dividends is a taxed event in some cases and in some jurisdictions.

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